Lorna Jane goes to ground after reports the business is up for sale

ONE of the country’s best known women’s fitness queens Lorna Jane Clarkson has gone to ground after reports that her multi-million business is being put up for sale by the American arm of a Swiss bank.

A spokeswoman for Lorna Jane said the Brisbane-based company would not be releasing a statement today, nor would either Mrs Clarkson or her chief executive husband Bill make any comment.

Media reports said Credit Suisse in New York would take the business to auction after a decision by the Clarksons and private equity partners CHAMP Ventures to sell up.

Of the one million ordinary shares in the business, the Clarksons own 300,000 each (60 per cent of Lorna Jane), while two directors of CHAMP Ventures own 200,000 each (40 per cent of the unlisted company).

Initially CHAMP Ventures was thought to be happy to remain in the business until next year, with some talk of floating the business on the stock market this year.

But that exit strategy may well have fallen through, with the market now abuzz with talk of a full sale with the company turning over significant profit increases.

Lorna Jane’s most recent annual report, for the year to June 30, 2013, saw the firm’s profit soar 52.3 per cent to $19.6 million. It had 617 staff, with 23 American outlets and paid out dividends of $10.3 million to shareholders.

CHAMP Ventures Investments Trusts No. 6 bought the significant minority stake in the business just over four years ago, with a view to pushing the firm towards major expansion.

Finalising the purchase, CHAMP Ventures director Paul Readdy said the firm was “really looking forward” to continuing to expand the business via strategic and financial support.

“Lorna Jane is very well placed to take advantage of the social trends toward healthy and active living,” he said.

At the time Lorna Jane had 72 stores nationwide and by the end of last financial year had grown to a footprint of 126 stores, with major growth being seen in its online store as well where sales jumped 76 per cent.

The big plan for this year was to open 24 more stores across the US, Mr Clarkson told The Courier-Mail in March, after a successful Californian launch two years ago.

‘This will take the total number of stores in the US to 50, which I believe is the highest US store number of any Australian brand,” Mr Clarkson said at the time.

US online sales were equal to 10 per cent of total bricks and mortar sales in Australia and the US, he said.

“We attribute this success to taking the time to introduce customers to the brand through our social media networks,” Mr Clarkson said, which included Google Plus, Facebook, Instagram and Pinterest.

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